The government and people of Albania clearly desire and are working towards greater Euro-Atlantic integration. The US supports this ambition that will help assure that Albania continues as a reliable, democratic and prosperous ally, increasingly capable of playing a role in securing peace and prosperity in the Balkan region and beyond.

Since 1992, USAID has delivered over $500 million in foreign aid to sup-port Albania’s development, stability, and integration into Europe.  Albania has played a positive, moderating role in the Balkans and is making strides toward Euro-Atlantic integration with its 2008 signing of a Stabilization and Association Agreement with the European Union (EU) and joining NATO in April 2009.  However, significant challenges exist for Albania to become a socially- and economically-viable democracy.

USAID’s programs in Albania strengthen democratic institutions, promote civil society, reduce corruption, promote gender equality and, at the same time, create a more favorable environment for inclusive economic growth– all necessary to move Albania forward more quickly towards greater democracy while meeting criteria that are essential to achieving its European aspirations.

PROGRAMS

STRENGHTENED RULE OF LAW AND GOOD GOVERNANCE
Albania has made many notable improvements in rule of law and good governance in the last twenty years but the country has not been able to move forward with the momentum required to introduce strong and sustainable democratic institutions that form the bedrock of representative, stable, prosperous, and equitable societies.  

In order to strengthen the rule of law and promote good governance, USAID programs focus on improving the enabling environment for planning, policy reform, enhancing citizen oversight and transparency, and upgrading performance and management capabilities in the judiciary, in local governments, and in the health sector.  USAID’s current rule of law program helps increase transparency and efficiency of the courts, strengthen the performance watchdog role of civil society, and strengthen the skills of legal professionals.   USAID’s local governance project supports such local government functions as planning, economic development, and public asset management that help create a favorable climate for business and investment. 

CONDITIONS CREATED FOR BROAD-BASED, SUSTAINABLE, AND INCLUSIVE ECONOMIC GROWTH
Albania is one of the fastest-growing countries in Europe, albeit from a low starting point, with average annual growth rates of nearly six percent, accompanied by rapid reductions in poverty.  Yet, although Albania was one of the few countries in Europe to maintain positive growth and financial stability in 2009 in the midst of the global financial and economic crisis, GDP per capita of $3,616 in 2010 is only about a quarter of the EU member state average, and continues to struggle with high unemployment, low foreign direct investment, poor infrastructure, and rising trade deficits. 

USAID’s program provides targeted policy level technical assistance that will assist in creating a framework for economic growth, macroeconomic stability, and increased regional integration that will allow a standard of living in Albania that is more commensurate with greater Europe.  Programs provide technical assistance, training, and capacity building to improve policies, laws, and regulations that impact the private sector with and emphasis on establishing the conditions for growth, rather than on providing assistance directly to specific enterprises. 

Historic neglect of critical road, port, energy, water, and telecommunication infrastructure, deficiencies which are impediments to new investment and profitable enterprise growth, pose enormous challenges for the economy, and put significant stress on the public budget.  USAID also helps improve the regulatory environment and promote clean energy and private investments in the energy and ICT sectors.